Greeting Stellar Family!
In order to achieve Lumenswap's ultimate goal, which is a perfect client for trading and swapping assets on the Stellar Network, we decided to represent milestones as the evolution stages of a product.
The third milestone of the Lumenswap evolution road was the introduction of LSP Asset.
Why LSP asset
For a number of reasons, a crypto exchange may create its own asset, and exchange owners frequently distribute assets to users as incentives. Most exchange assets are meant to enhance an exchange's liquidity, reward trading activity, or make the exchange's community governance process easier. Let's take a deeper look on the process:
Enhanced liquidity
In a financial market, liquidity refers to the availability of trading activity that can be depended on. Markets with greater liquidity run more smoothly, and assets with greater liquidity may be traded more readily without significant price changes or slippage. Crypto exchanges can utilize native assets to motivate market makers in the absence of traditional market makers by giving incentives proportionally to their overall trading volume or through specified staking programs.
Governance
Not all cryptocurrency exchange assets are intended to be used as a bonus for platform users. Several crypto exchanges have released native assets as a governance tool for the exchange's future development. While this use case is less frequent than others, decentralized exchange assets have become an increasingly significant goal for DEXs looking to migrate to completely community-run operations.
Introduction
LSP is a reward and governance asset which has a major role in keeping the Lumenswap ecosystem cycle dynamic and decentralized.
1,000,000,000 LSP asset (fixed) have been minted at the genesis and will be vested over the course of 10 years.
Asset info
Asset issuer: GAB7STHVD…MKDM24WK
Asset code: LSP
Asset type: credit_alphanum4
Decimal: 7
Note: We have enabled the Immutable flag for LSP, which means that the asset issuer (Lumenswap team) has no control over the asset and the holders have their own control. Our reason for handing over total control was that Lumenswap is a decentralized project by nature and developers must have no influence over assets. Read more about accounts flags: https://developers.stellar.org/docs/glossary/accounts/#flags
LSP Tokenomics
Asset allocation
19% Team
16% Foundation
3% Advisors
40% Ecosystem Rewards
12% Community public sale
10% Marketing
LSP asset circulation schedule
Lock details
Note: We have planned an auction for the public sale in the Lumenswap spot client (IDO). We will announce more details in the coming weeks.
To establish transparency in the way assets are unlocked according to the plan we announced, we put them in different addresses so that you can follow their distribution process.
Public sale account: GA6N5CBQ…FX56B72D
Team account: GB6OM72C…MV5XLD4I
Advisor account: GDTSM26B…HXW5WIUM
Ecosystem rewards account: GDDD65VO…GSZE6BBY
Marketing account: GCYN3F4D…5J266YLJ
Foundation account: GCLQTGIH…J2EODJH3
LSP Use-cases
1. Rewards for LSP Holders
Each month, we will distribute 25% of the total assets between LSP holders. The monthly distributions will continue for 10 years.
On a randomly selected day of the month, we will take a snapshot of all LSP holder accounts to determine the rewards. So, all users who hold LSP for an entire month will receive their reward and have nothing to worry about.
2. Rewards for LSP Traders
Each month, we will distribute 15% of total assets between people who trade LSP. The monthly distributions will continue for 10 years. For each round of distribution, we randomly select 1000 accounts with LSP trade history to give them a reward.
Note: The trade does not necessarily have to be done on Lumenswap; it can be traded on any platform that is on the Stellar network.
For the sake of transparency, we will announce a list of accounts that received rewards in an article each month.
3. Governance
Because we are moving towards a goal that has already been set - decentralization and transparency - we will use the governance model for future Lumenswap decisions.
Note: The governance implementation process and its rules will be announced in detail later in an article.
Thank you for reading this article.
